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A fixed cost of $1000 is incurred in producing a batch of 200 machine
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22 Mar 2018, 11:27
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A fixed cost of $1000 is incurred in producing a batch of 200 machine tools. Additionally, $20 goes into the finishing and packaging of each machine tool. If a consignment of 50 batches was sold for $1000000, what is the percentage profit earned by the company on this consignment? A. 30% B. 300% C. 3000% D. 60% E. 600% Source: Experts Global
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A fixed cost of $1000 is incurred in producing a batch of 200 machine
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22 Mar 2018, 14:07
pushpitkc wrote: A fixed cost of $1000 is incurred in producing a batch of 200 machine tools. Additionally, $20 goes into the finishing and packaging of each machine tool. If a consignment of 50 batches was sold for $1000000, what is the percentage profit earned by the company on this consignment? A. 30% B. 300% C. 3000% D. 60% E. 600% Source: Experts GlobalPercentage profit: \(\frac{(TRTC)}{TC}*100\)Total Cost (TC)50($1000) + ($20)(50*200) = $250,000 Percentage profit: \(\frac{$1,000,000$250,000}{$250,000}*100\)=
\((\frac{$750,000}{$250,000}*100)= 3 * 100= 300\) % Answer B Similar formula, per batch cost firstPercentage profit = \(\frac{(TRTC)}{TC}*100\) <> \(\frac{GrossProfit}{TC}*100\)1) Cost price of 1 batch (= 200 tools)? $1,000 fixed + $20/tool (* 200 tools) $1,000 + ($20)(200) $1,000 + $4,000 = $5,000 cost price per batch 2) Total cost (TC) of 50 batches? (50 * $5,000) = $250,000 3) TR, given = $1,000,000 4) Gross profit = (TR  TC) ($1,000,000  $250,000) = $750,000 5) Percentage profit = \(\frac{GrossProfit}{TC}*100=\)
\((\frac{$750,000}{$250,000}*100)= 3 * 100= 300\) % Answer B
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Re: A fixed cost of $1000 is incurred in producing a batch of 200 machine
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22 Mar 2018, 15:45
I found it easiest to figure out the total cost of producing a single batch (1000+4000), then figure out the revenue for each batch (20000), so profit is 15000 which is 3 times 5000 which works out to 300%



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A fixed cost of $1000 is incurred in producing a batch of 200 machine
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23 Mar 2018, 12:08
hawesg wrote: I found it easiest to figure out the total cost of producing a single batch (1000+4000), then figure out the revenue for each batch (20000), so profit is 15000 which is 3 times 5000 which works out to 300% hawesg , Creative solution. +1 And welcome to GMAT club! (I'm late by a few weeks. )
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Re: A fixed cost of $1000 is incurred in producing a batch of 200 machine
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23 Mar 2018, 16:24
generis wrote: hawesg wrote: I found it easiest to figure out the total cost of producing a single batch (1000+4000), then figure out the revenue for each batch (20000), so profit is 15000 which is 3 times 5000 which works out to 300% hawesg , Creative solution. +1 And welcome to GMAT club! (I'm late by a few weeks. ) To be fair I started writing it out the long way before I realized it wasn't required.



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A fixed cost of $1000 is incurred in producing a batch of 200 machine
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03 Apr 2018, 05:12
A fixed cost of $1000 is incurred in producing a batch of 200 machine tools. Additionally, 20$ goes into finishing and packaging of each machine tool. If a consignment of 50 batches sold for $1,000,000. What is the percentage of profit earned by the company on this consignment? a) 30% b) 300% c) 3000% d) 60% e) 600%
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Re: A fixed cost of $1000 is incurred in producing a batch of 200 machine
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03 Apr 2018, 08:09
sandysilva wrote: A fixed cost of $1000 is incurred in producing a batch of 200 machine tools. Additionally, 20$ goes into finishing and packaging of each machine tool. If a consignment of 50 batches sold for $1,000,000. What is the percentage of profit earned by the company on this consignment?
a) 30% b) 300% c) 3000% d) 60% e) 600% Hi, The question is already posted in the below link. Kindly follow the rules of posting and search before you post. Thanks https://gmatclub.com/forum/afixedcost ... fl=similar




Re: A fixed cost of $1000 is incurred in producing a batch of 200 machine
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